Lord Kirkhope of Harrogate (Con)

My Lords, I just want to touch on some basic principles here. As we go through the Bill in Committee, I go back to look at the whole basis of what the Government are trying to do, which I broadly support. However, it essentially says here that members should benefit from these reforms and get better outcomes and greater value for their pension and invested funds. Therefore, although in general I agree with the first of these amendments, if one looks further into Amendments 172, 173 and 174—which I want to concentrate on here—they remind us of the interesting power balance we seem to be developing. I am somewhat concerned, as a trustee of a fund, that my accountability has always primarily been to the members, to achieve the outcomes that the Bill suggests should be achieved. The noble Lord, Lord Davies, spoke a few minutes ago about responsibility of government. Of course, the responsibility of trustees has been enormous, and is very important as a protection for members but also as a barrier between the way investments take place and the way regulation takes place. I was investigated myself when I first became a trustee because I was appointed by a company and under Section 72— I think it was, at that time—of the Pensions Act, the regulator checked to see whether I was too closely connected to the company. It is true that I was a good friend of the company directors and so on, but I had to prove that I would act in a dispassionate manner and that I would do the very best for members at all times. Of course, however, in doing that chore, I have had issues regarding the position of the regulator and the relationship between the regulator and the PPF in determining the nature of investment the trustees have made. The balance of trustees’ investments has always been a critical factor in reporting—as has been necessary—to the regulator and to the PPF. This is all essential stuff. Therefore, in view of the mandation proposals and looking at Amendments 172, 173 and 174, all of which refer to important elements, I have one question. How will this future relationship be in existence for the benefit of the members? Amendment 172 talks about informing members, and one of the criticisms of trustees—sometimes coming from members, or sometimes from the regulator—has been that not enough information has been provided to scheme members for things that have been done on their behalf. Is the process we are now looking at really going to allow for that information to be objective and put to the members appropriately by the people who ought to do it—the trustees? Value for money for anything that is mandated is a decision to be made, and we had that debate in the last group. I am concerned about that, too. Finally, on the question of the reduction of members’ choices—trustees inevitably inform their members of the options available to them—a genuine and legitimate choice must be available to members at all times. If that is not the case, it is very difficult for trustees to perform their duties and not fall foul of what will still be a very heavy set of regulations on the choices that they make.